IB acct - converting half to euros

Discussion in 'Retail Brokers' started by SideShowBob, Sep 25, 2007.

  1. I want to convert half the balance of my account to euros or GBP to protect against further slides in the dollar. This is not a forex trade per se as I plan to keep the funds in the foreign currency for a long time and I will not be converting back/forth (at least not often).

    If I have say $20000 and I convert half to euros (so $10K USD and the rest in euros), then I want to buy 3 ER2 futures with a current margin of $4000 each, will I be borrowing $2K USD? I assume the answer is yes. But what happens if I do this in an IRA (assuming I have the IB margin IRA)?

    - Will my trade fail for lack of margin?
    - Or will IB automatically convert some cash back to USD?
    - Or will I not be able to convert to Euros at all in my IRA?

  2. 2006


    Why not just hedge -- you'll be able to flip positions easily.

    It takes a day for base currency changes to take affect I believe.
  3. Div_Arb


    IB doesn't offer interest on the first $10k of your cash balance. This is in dollars, don't know about in Euros.
  4. It's about the same minimum in Euros adjusted for the exchange rate (for example it was $5500 for GPB). That's a good point, I'd probably want to convert all my cash, not just half....of course that's a different thing....